Investment Analysis: The PHH Corporation

By Above Average Odds Investing: You Can Be a Stock Market Genius was written by Joel Greenblatt in 1999. It is an oft recommended book by a value investor. The recommendations, however, generally come with the following caveat, or something similar in effect: “Now I know the title is awful but…” If you can get past the cheesy title and into the meat, the book provides an investor with a wealth of knowledge, focusing on areas of the stock market that are overlooked by most investors, and explaining how you can find value there. One opportunity that is discussed at length in the book is the spin-off. A spin-off typically occurs either when the company feels that the sum of the parts is greater than the whole, or when a bad business is overwhelming the perception of a good business. Usually a spin-off involves two or more businesses that are mostly mutually exclusive from oneComplete Story »

Insider Monkey submits: Joel Greenblatt is the founder of Gotham Capital, a hedge fund with extremely good returns. We at Insider Monkey like Joel Greenblatt because he’s smart and not so secretive about his investment style.

In Brief
Magic Formula Investing is a value investing strategy based on buying 20-30 quot;good, cheap companiesquot; defined as having the best available combined ranking in terms of earnings yield and a return on capital.
Background
A widely respected hedge-fund manager, Joel Greenblatt started as a value purist but was influenced by Warren Buffett's view about growth being part of the value equation. He founded Gotham Capital, a fund which apparently returned over 40% annualized from 1985 to 2005. By 1995, it had returned all money to its outside investors.

In Brief
Magic Formula Investing is a value investing strategy based on buying 20-30 quot;good, cheap companiesquot; defined as having the best available combined ranking in terms of earnings yield and a return on capital.
Background
A widely respected hedge-fund manager, Joel Greenblatt started as a value purist, but was later influenced by Warren Buffett's view about growth being part of the value equation. He founded Gotham Capital, a fund which returned over 40% on an annualized basis from 1985 to 2005. By 1995, it had returned all money to its outside investors.